This snapshot tells the story of two halves in yesterday's trading
Asia and Europe saw stocks fall, but US stocks ended the day higher
In Asian trading and European trading yesterday, it was certain that the dollar would get hammered by the time we closed the day. EURUSD broke 1.2000, and despite risk aversion in the market from the escalation by North Korea, USD failed to even catch a bit against commodity currencies like AUD and NZD.
The key thing to look out for in all of this geopolitical issues with North Korea is what will the reaction from the US will be. Instead of retaliating with his "fire and fury" comments, Trump was far more preoccupied by tropical storm Harvey and Texas - as his attention was more towards the rescue efforts there.
His Twitter account barely rambled on anything related to North Korea, and his lackadaisical response towards the missile launch yesterday is what is providing relief to the market.
So, as long as Trump has his eyes focused on anything else but Kim Jong-Un, markets will be more than happy to move along with that rhetoric as well.
